Jamba Juice Case

1. Identify and describe the biggest challenge facing Jamba Juice (JJ).

The main challenge facing Jamba juice is expansion of stores in different parts of the world, and poor marketing strategies. The company, which was under the control of Paul Clayton in the year 2008, started experiencing huge losses due to poor planning (Case 8, p. 39). The company aimed at owning different franchises in the country and thus making it hard to manage the franchises. Moreover, during the same period, the company had poor marketing strategies whereby it did not use mass media to advertise its products. Its main method of advertisements was the word of mouth. Even though the company provided products of high quality, mass media advertisement was very essential for the company, as it needed to acquire new customers and thus being able to increase its sales and realize huge profits.

The company basically focused on acquiring franchises which also led it to experience huge losses amounting to $228 million. This saw the company suffering and it had to close ten of its underperforming company owned stores. The rate at which the company was spending money was very high compared to rate at which the business was performing (Case 8, p. 40). Most of its profits were realized from royalties and not from the sale of the products. Furthermore, due to the changing seasons, the company experienced losses during the low seasons particularly in areas which had prolonged winter seasons such as California. The company came up with new ideas of launching new products which would earn it profit. The main problem was that the company could not be able to match its competitors such McDonalds and Starbucks simply because it had poor marketing strategies.

2. Identify and describe what specifically JJ should do to solve this problem.

In order for Jumbo juice to be able to solve their poor marketing and planning strategies, it should employ new technics in order to deal with the issue at hand. First and foremost, the company should come up with a better marketing strategy. This therefore means that the company should acquire new marketing strategies and this include mass media advertisement and social media marketing (Case 8, p. 41). Mass media advertisement will not only help the company to acquire new customers, but it will also create brand awareness and thus affecting the company positively. Moreover, social media marketing will really help in creating traffic to the company and thus increase the sales of the company. This will therefore see the company realizing huge profits and thus being able to benefit from its sales.

3. Provide sufficient support for the strategy you articulated by utilizing appropriate analytical tools.

Mass media marketing and social media marketing are the best ways through which the company can be able to acquire new customers since it has the following strengths.

The company will increase sales through acquiring new customers

The company will also have traffic and thus be able to realize profits

These creates brand awareness and thus making it easy for most people to know about the company’s products (Case 8, p. 43).

These marketing strategies also have the following weaknesses.

Mass media marketing is very expensive and no sales are guaranteed.

Social media marketing also depends on the types of brands that the company is competing with.

These marketing strategies have the following opportunities.

More customers will be driven to the company’s brand.

The company can change its face to the customers.

The company will also reduce the losses.

Threats that the marketing strategies are likely to face.

Poor target market might be attracted to the company.

Criticism from the social media which could reduce the traffic (Case 8, p. 46).

 

Work Cited

Case 8. Jamba Juice: Lumpkin, Eisner, McNamara, Strategic Management, McGraw Hill Education, 7t